Question 3 of 5

Before preparing financial statements for the current year, the chief accountant for Monty Corp. discovered the following errors in accounts. 1. The declaration and payment of $61,000 cash dividend was recorded as a debit to Interest Expense $61,000 and a credit t Cash $61,000. 2. A 10% stock dividend (1,300 shares) was declared on the $10 par value stock when the market price per share was $17, Th only entry made was Stock Dividends (Dr.) $13,000 and Dividend Payable ( Cr.) $13,000. The shares have not been issued. 3. A 4-for-1 stock split involving the issue of 410,000 shares of $5 par value common stock for 102,500 shares of $20 par valu cornmon stock was recorded as a debit to Retained Earnings $2,050,000 and a credit to Common Stock $2,050,000. Prepare the correcting entries at December 31. (Credit account tities are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter O for the amounts.)